New Delhi: The Delhi High Court has given a blow to the central government on the ban on service charges levied by hotels and restaurants. Actually, the Central Consumer Protection Authority i.e. CCPA had banned the collection of service charges. Now in its latest decision on service charges, the Delhi High Court said that the stay on the CCPA guidelines will continue and restaurants are free to charge service charges till the next hearing.
Restaurants are obliged to pay their employees
The High Court also gave time to the Restaurant Association to file its reply to the CCPA’s plea challenging the earlier order to stay the guidelines except for the service charge. However, hearing the matter on Thursday, the court said that restaurants are bound to pay their employees and the customers cannot be made liable for the same.
What is the matter
In July last, the CCPA barred hotels and restaurants from adding an automatic service charge to food bills. The Chief Commissioner of CCPA had clearly stated in the guidelines that no hotel or restaurant will automatically add a service charge to the bill. Along with this, no service charge will be levied by any other name.
Provision for complaint
According to the guidelines, whether or not to pay the service charge will depend on the customer, the restaurant cannot force the customers for this in any way. Restaurants and hotels must clearly inform customers that the service charge is optional, voluntary, and at the discretion of the customer. According to the CCPA order, if a restaurant levies a service charge in its bill, then the customer can lodge a restaurant complaint on the National Consumer Helpline number 1915.
